Financial Results Briefing for the Second Quarter (Interim Period) of the Fiscal Year Ending December 2026 | INPEX CORPORATION (1605) timely disclosure

Worth reading

78Important

Scored from 5 of 6 sections

Direction

Improvement

Direction inferred from the company’s description.

Scale

600

¥100 million

Wording

Conditional

How definitive the wording is.

Contents of this document

Financial results presentationSecond quarter (interim period) of the fiscal year ending December 202610 items taken from the company’s own explanation

Financial Results Figures (The key points of this material are explained below)

Net Sales¥10,004 100 million-4.6%

Operating profit¥6,187 100 million+0.3%

Ordinary income¥6,443 100 million-0.1%

Net income¥2,631 100 million+17.7%

Selling, general and administrative expenses¥625 100 million

Full-year earnings forecast

Revenue

¥19,730 100 million

Operating profit

¥12,230 100 million

Income before taxes

¥12,780 100 million

Profit for the period attributable to owners of the parent

¥5,100 100 million

ROIC

8.2 %

ROE

10.5 %

Net debt-to-equity ratio

0.37 times

What the company explained in this material

Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.

Lower sales volumes¥-1,695 100 million
Higher selling prices¥492 100 million
Foreign Exchange¥556 100 million
Other¥162 100 million
Increase in costs of sales¥-35 100 million
Lower exploration expenses¥9 100 million
Increase in SG&A expenses¥-48 100 million
Higher equity-method income¥98 100 million
Other income and expenses¥456 100 million
Decrease in corporate income taxes and other taxes¥400 100 million

Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.

Brent crude oil price$81.4 /bbl
Foreign Exchange¥159.2 /$
WACCApproximately 6%
Cost of shareholders’ equityApproximately 8%

New initiatives

Launch of EPC tenders for SURF/GEP and other facilities at Abadi LNG
Acquisition of 3 blocks in Australia's Beetaloo Sub-basin
EPC tender awards for additional development of the Upper Zakum oil field
Execution of a concession agreement for development of the gas cap at the Bab oil field
Additional acquisition of shares in INPEX南西カスピ海石油, making it a wholly owned subsidiary
Acquisition of interests in Block 2E offshore Sarawak, Malaysia
Award of the Barong exploration block in Indonesia and execution of a production-sharing contract
Commencement of drilling an appraisal well for metropolitan-area CCS
Commencement of electricity supply from hydrogen power generation at the Kashiwazaki Hydrogen Park

Key KPIsA metric the company considers important as a management benchmark.

Average oil price during the period (Brent)$87.6 /bbl
Year on year against the same period last year+23.7%
Average exchange rate during the period¥158.29 /$
Year on year against the same period last year6.7% yen depreciation
Basic interim earnings per share (EPS)¥226.33
Year on year against the same period last year+21.3%
Book value per share attributable to owners of the parent (BPS)¥4,390.36
Year on year against the same period last year+7.8%
Operating cash flow (full-year forecast)¥10,550 100 million
GHG emissions intensity29 kg/boe

Unit price and quantity metricsThese figures show sales broken down by price and volume.

ProductCrude oil
Sales volume
55,170 thousand bbl
Selling price
$79.51 /bbl
ProductNatural gas (excluding LPG)
Sales volume
256,808 million cf
Average overseas selling price
$5.24 /thousand cf
Average domestic selling price
77 yen/m3

Medium-term management plan targets

Growth Investment
Target value19,000
Target fiscal yearThrough the fiscal year ending December 2027
Operating cash flow
Target value22,000
Target fiscal yearThrough the fiscal year ending December 2027
Net production volume
Target value800,000
Target fiscal year2035

Financial targets

ROE

Target value10% or higher

Actual value10.5 %

ROIC

Target value10% or higher

Actual value8.2 %

Net debt-to-equity ratio

Actual value0.33 times

Annual Dividend

Annual

¥112 per share

Interim

¥56 per share

Payout ratio

Total payout ratioApproximately 53%

Policy for the medium-term plan periodTotal payout ratio of 50% or more

Acquisition of treasury shares

¥1,400 100 million

Contents of this document
Item	Details
Document type	Financial results presentation
Fiscal Period Covered	Second quarter (interim period) of the fiscal year ending December 2026
Net Sales	¥10,004 100 million (YoY -4.6%)
Operating profit	¥6,187 100 million (YoY +0.3%)
Ordinary income	¥6,443 100 million (YoY -0.1%)
Net income	¥2,631 100 million (YoY +17.7%)
Selling, general and administrative expenses	¥625 100 million
Full-year earnings forecast	Revenue ¥19,730 100 million / Operating profit ¥12,230 100 million / Income before taxes ¥12,780 100 million / Profit for the period attributable to owners of the parent ¥5,100 100 million / ROIC 8.2 % / ROE 10.5 % / Net debt-to-equity ratio 0.37 times
Breakdown of Factors Affecting the Change	Factors Lower sales volumes / Amount ¥-1,695 100 million, Factors Higher selling prices / Amount ¥492 100 million, Factors Foreign Exchange / Amount ¥556 100 million, Factors Other / Amount ¥162 100 million, Factors Increase in costs of sales / Amount ¥-35 100 million, Factors Lower exploration expenses / Amount ¥9 100 million, Factors Increase in SG&A expenses / Amount ¥-48 100 million, Factors Higher equity-method income / Amount ¥98 100 million, Factors Other income and expenses / Amount ¥456 100 million, Factors Decrease in corporate income taxes and other taxes / Amount ¥400 100 million
Key KPIs	Indicator name Average oil price during the period (Brent) / Value $87.6 /bbl / Year on year against the same period last year $23.7 /bbl, Indicator name Average exchange rate during the period / Value ¥158.29 /$ / Year on year against the same period last year 6.7% yen depreciation, Indicator name Basic interim earnings per share (EPS) / Value ¥226.33 / Year on year against the same period last year ¥21.3, Indicator name Book value per share attributable to owners of the parent (BPS) / Value ¥4,390.36 / Year on year against the same period last year ¥7.8, Indicator name Operating cash flow (full-year forecast) / Value ¥10,550 100 million / Year on year against the same period last year Not disclosed, Indicator name GHG emissions intensity / Value 29 kg/boe / Year on year against the same period last year Not disclosed
Unit price and quantity metrics	Product Crude oil / Sales volume 55,170 thousand bbl / Selling price $79.51 /bbl, Product Natural gas (excluding LPG) / Sales volume 256,808 million cf / Average overseas selling price $5.24 /thousand cf / Average domestic selling price 77 yen/m3
Assumptions Underlying the Business Outlook	Item Brent crude oil price / Value $81.4 /bbl, Item Foreign Exchange / Value ¥159.2 /$, Item WACC / Value Approximately 6%, Item Cost of shareholders’ equity / Value Approximately 8%
Medium-term management plan targets	Item Growth Investment / Target value ¥19,000 100 million / Target fiscal year Through the fiscal year ending December 2027, Item Operating cash flow / Target value ¥22,000 100 million / Target fiscal year Through the fiscal year ending December 2027, Item Net production volume / Target value 800,000 Boed / Target fiscal year 2035 Boed
Financial targets	ROE Target value 10% or higher / Actual value 10.5 % / ROIC Target value 10% or higher / Actual value 8.2 % / Net debt-to-equity ratio Target value Not disclosed / Actual value 0.33 times
Annual Dividend	Annual ¥112 per share / Interim ¥56 per share / End of period Not disclosed
Payout ratio	Total payout ratio Approximately 53% / Policy for the medium-term plan period Total payout ratio of 50% or more
Acquisition of treasury shares	Amount ¥1,400 100 million / Number of Shares Not disclosed / Period Not disclosed
New initiatives	Launch of EPC tenders for SURF/GEP and other facilities at Abadi LNG, Acquisition of 3 blocks in Australia's Beetaloo Sub-basin, EPC tender awards for additional development of the Upper Zakum oil field, Execution of a concession agreement for development of the gas cap at the Bab oil field, Additional acquisition of shares in INPEX南西カスピ海石油, making it a wholly owned subsidiary, Acquisition of interests in Block 2E offshore Sarawak, Malaysia, Award of the Barong exploration block in Indonesia and execution of a production-sharing contract, Commencement of drilling an appraisal well for metropolitan-area CCS, Commencement of electricity supply from hydrogen power generation at the Kashiwazaki Hydrogen Park

Items this document does not state (13)

Gross Profit MarginOperating profit marginResults for the three months of the current quarterProgress against full-year forecastSelf-assessment against the planSegment resultsNumber of stores and locationsNumber of employeesRisk amount incorporated into the outlookCapital expendituresOrders received and order backlogMarket Size / ShareKey points of the Q&A

These are items the company does not state in this document. We do not leave them blank, nor fill them in from other sources or by inference.

The reasons the company gives

The company's own explanation, not something inferred from the numbers.

In the interim period, lower crude oil sales volumes amid the conflict in the Middle East reduced revenue, while higher selling prices, yen depreciation, lower income taxes and other taxes, and strong production at Ichthys LNG boosted profit. The upward revision to the full-year forecast reflects higher selling prices and the solid production performance of Ichthys LNG.

How to read this page

This is not the documentKomori reads the disclosure the company filed and writes this summary. Figures are as stated by the company and are not audited.

Weight is not a verdictIt measures how much this changes what the company had already told the market. It is not a view on the shares.

Corrections happenIf the company reissues this disclosure, the page is rebuilt from the corrected version and the revision number moves up.